FedEx plans to layoff 173 workers at facilities throughout Southern California as part of a pandemic-era reorganization announced four years ago by the global logistics company.
In letters filed with the state’s Employment Development Department over the past month, FedEx attorney Robbin Hutton wrote that shipping facilities would be closed permanently in Palm Springs, Victorville and San Diego.
The layoffs are effective Sept. 29 for 62 workers at a FedEx shipping hub near the Palm Springs International Airport, and on Sept. 28 for 54 workers at a shipping hub in Victorville. FedEx said that another 57 workers will be laid off at the end of August in San Diego.
“We’ve been undergoing a network transformation for several years to improve how we pick up, transport, and deliver packages across the U.S. and Canada,” said FedEx spokesman David Westrick. “As we go through this transformation, some facilities must close. These decisions are never made lightly. We’re committed to supporting impacted employees through job placement assistance, relocation aid, or severance. As of this time, there are no further Southern California closures planned.”
The FedEx closures in Southern California come as part of “a multi-year transformation plan” to combine its air and ground operations into a single logistics network. The massive overhaul targeted nearly $2 billion in savings annually by the end of 2027.
Earlier layoffs at FedEx facilities in the state have come as a result of the reorganization, including last year’s 95 workers in Oakland and 79 workers in Emeryville.
The latest round of layoffs in Southern California bring to 347 total workers affected by FedEx’s reorganization, dubbed officially as its “Network 2.0” initiative. A layoff of 405 workers at Los Angeles International Airport in November 2023 was a result of FedEx relocating a heavy aircraft maintenance base to Indianapolis, and not a part of the Network 2.0 initiative.
The initiative has already led to the closure of more than 200 stations. FedEx is expected to close over 475 stations by the end of 2027, said Scott Ray, the carrier’s chief operating officer for U.S. and Canada surface operations, at an investor day presentation in February.
A FedEx station is a local, non-public facility at which delivery drivers sort packages, load their trucks and manage local pickup and delivery routes for a specific area. These back-end facilities connect large regional sorting hubs to neighborhoods and businesses, though they are generally not open for retail customer visits.
Positions affected by the layoffs include couriers, shuttle drivers, warehouse workers, managers and service agents in administrative and support functions across the organization.
The layoff filings in Southern California were made as part of the federal Worker Adjustment and Retraining Notification Act — commonly referred to as WARN, which are required when an employer lays off more than 50 employees.